While the online forex marketplace is the largest financial market in the world today imp source, it can be difficult to access. Forex trading is not without risk, especially if it’s something you don’t know much about. Because it’s not a regulated industry, risks don’t just apply to traders.
Banks, currency dealers, hedge funds and large currency dealers have been the sole ones to be able access forex currencies. Rarely are those with large assets allowed access. The smaller financial companies want a small piece of the huge pie. Forex trading has many advantages over the other financial markets. One of its benefits is the incredible liquidity. It is accessible 24/7 and five 1/2 times per week. There is a constant trend in its forex rates.
It is very easy for forex retail traders to trade on the internet due to the visionary entrepreneurship of small-scale organisations and the advent of the Internet. Internet access is easy for them, and they program software to give accurate prices, news and technical indicators. Since 2002, the number forex investors has increased by threefold.
Some of the advantages of forex trading are probably familiar to you. In fact, forex trading is the fastest growing and largest market in the entire world. This is a real-time currency market, where currencies are bought or sold to make money.
It is also an advantage that the forex market is available 24 hours per day. 5.5 of these days fall on the weekends. Forex trading is accessible 24 hours aday, 5.5 of those days are weekends. This is a benefit because trade clearing is decentralized. This is because clearing trades are decentralized.
Forex is also very liquid, which is a great asset. The exchange rate is constant because currency is at heart of global commerce. Despite the “slow” times, there is still plenty available of liquidity in the banks. You can still trade currencies with leverage up to 100:1. Even though high leverage can bring about big losses or gains, there is risk.
Today, anyone with an open mind and a solid understanding of currency trading trends and market movements can try their hand at online trading. Comparing online forex to other financial markets, there are many advantages.